PETALING JAYA: Employers are taking group insurance schemes as there is a need for greater protection and a more comprehensive coverage, says Malaysian Employers Federation (MEF) executive director Shamsuddin Bardan.
He told The Malay Mail the social insurance scheme by the Social Security Organisation (Socso) is limited in scope and hence many employers feel the inadequacies for their staff, therefore opting for group insurance plans.
“As we move towards a high income economy, provisions for social insurance coverage needs to be reviewed. When companies take on additional insurance, it is not cheap. Instead of employers incurring extra costs, the social insurance policies should be reevaluated to provide better coverage,” said Shamsuddin.
He said it should not be compulsory for employers to buy group insurance and also that Socso guidelines should be reassessed even when employers have taken group insurance policies.
“I believe lots of disputes can be avoided if a no-fault insurance system is practised by Socso, as adopted by most developed countries,” said Shamsuddin.
Source : http://www.mmail.com.my/content/69059-group-insurance-rise
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